Want a Yuan Play? Look to Commodities
Tuesday, June 22nd, 2010IndexUniverse submits:
By Lara Crigger
Maybe the best way to play the Chinese yuan is to not play it at all.
Matt Hougan is right when he says that taking a direct stance in the newly "flexible" Chinese currency via the WisdomTree Dreyfus Chinese Yuan ETF (CYB) or the Market Vectors Chinese Renminbi/USD ETN (CNY) isn’t exactly instant gratification. As Matt points out, these funds offer exposure to currency futures, not spot yuan. So if you’re trying to access near-term appreciations in China’s currency, you’re bound to be disappointed, because these are markets where expectations for prices several months in the future often matter more than any short-term central bank decision.
